Star Entertainment expects earnings decrease for Q4 FY24
The operator expects its FY24 normalised EBITDA to be between AU$165m (US$110m) to AU$180m (US$120m) due to recent challenges.
Star Entertainment has recently released its FY24 financial update, stating that group revenue for Q4 FY24 is expected to be 4.3% below the previous quarter (Q3 FY24) and 3.3% below the prior corresponding period in Q4 FY23.
According to the report, revenue from the group’s properties is on a downward trend in comparison to their prior corresponding period, especially regarding Premium Gaming Rooms (PGRs), with an estimated 16.5% decrease in total.
These include The Star Sydney, with a projected decrease of 13.2%, The Star Gold Coast at a 22.6% decrease and Treasury Brisbane, with a 18.2% decrease.
The Group’s Main Gaming Floor (MGF), however, has shown better performance, with an expected 5.2% rise in total across all properties, with The Star Sydney up 6.3% and The Star Gold Coast seeing a 10% increase while Treasury Brisbane remained unchanged. However, the increase is still not enough to offset the overall decrease, which resulted in a total revenue decrease of 6.9% year-on-year.
Star Entertainment’s monthly run-rate operating expenses are expected to remain high at an estimated AU$92.5m. The Group will seek to reduce the cost, with initiatives from sales of assets which included the Treasury casino, hotel and Festival Car Park in Brisbane.
Star Entertainment was faced with several reports and investigations into misconduct and regulatory breaches by the New South Wales (NSW) Independent Casino Commission, which resulted in the resignation of its former Chairman David Foster and several others earlier this year.
The most recent appointment was Jeannie Mok as the new COO, in the hope that Mok’s hire will usher in a new period of stability.
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